U.S. Producer Prices Surge 5.4%, Pushing Interest Rate Hike Probability Above 60%

Bitcoin (BTC) tumbled to around 76,000 USD following the release of U.S. producer price data. Experts suggest that persistent inflationary pressures have fueled risk aversion among investors.

As of 9:22 a.m. (KST) on Friday, Bitcoin was trading at 10,492,200 KRW (about 7,814 USD) in South Korea, down 0.61% from the same time the previous day.

Simultaneously, CoinMarketCap reported Bitcoin trading at 76,731 USD, a 1.87% drop from the day before. After hovering around 78,000 USD yesterday, it has now slipped into the 76,000 USD range.

The U.S. Labor Department reported on Thursday that last month's Producer Price Index (PPI) jumped 5.4% year-over-year, exceeding market expectations of 5.3%. Month-over-month, it rose 0.4%, matching forecasts and extending the upward trend that began with July's 0.1% increase.

Goods prices climbed 1.1% from the previous month, driving overall inflation. Notably, diesel prices skyrocketed 24.1%, while gasoline, jet fuel, and heating oil costs also saw significant increases.

Analysts warn that if inflation continues to climb, the likelihood of interest rate hikes could reduce liquidity, potentially dampening investor appetite for risk assets like Bitcoin.

According to CoinDesk, the Chicago Mercantile Exchange (CME) FedWatch tool indicates a 60%-plus probability of the Federal Reserve raising interest rates next week.

OKX Rolls Out Pre-IPO Futures for OpenAI and Anthropic in European Markets

Global crypto exchange OKX has introduced a new product allowing European investors to speculate on valuation changes for OpenAI and Anthropic through pre-initial public offering (IPO) perpetual futures.

CoinDesk reported on Thursday that OKX is now offering pre-IPO perpetual futures linked to OpenAI and Anthropic for eligible European users.

This innovative product enables investors to bet on pre-IPO valuation fluctuations without directly owning company shares. Traders can take long or short positions with up to 10x leverage.

As neither company currently has publicly traded shares, contract prices will be determined by buy and sell orders on OKX's market. This could lead to significant discrepancies between recent private investment valuations and eventual IPO prices.

European Regulators Caution PolyMarket and Kalshi on Operational Approval Requirements

European financial watchdogs have issued warnings about the risks of unlicensed operations and potential market manipulation by global prediction market platforms, including PolyMarket and Kalshi.

The Block reported on Thursday that the European Securities and Markets Authority (ESMA) stated in a recent report that prediction market operators must secure regulatory approval before offering event contracts to European users.

ESMA noted that while PolyMarket and Kalshi restrict trading in certain member states, it remains unclear whether they can effectively prevent access by users employing virtual private networks (VPNs).

Prediction markets allow users to wager on outcomes of specific events, such as elections, sports, and economic indicators. ESMA clarified that these contracts may fall under European Union (EU) restrictions on binary options sales, MiCA regulations, and individual member states' gambling laws.

MoneyGram Debuts First Stablecoin-Linked Card

Global remittance giant MoneyGram has launched a Visa card enabling users to spend stablecoin balances for both online and in-store purchases.

The Block reported on Thursday that MoneyGram, in partnership with stablecoin payment infrastructure provider Rain, has introduced the MoneyGram Card service in Colombia, marking the company's first foray into stablecoin-based card offerings.

Users can now utilize their USD Coin (USDC) balances stored in the MoneyGram Apple lication (app) at Visa-accepting merchants. By adding the card to their mobile wallets, customers can also make contactless payments at physical stores. Merchants will receive settlements in local fiat currency rather than stablecoins.

U.S. Producer Prices Surge 5.4%, Pushing Interest Rate Hike Probability Above 60%Bitcoin ( …

Is a 60% Chance of Rate Hikes Looming? Impact on Bitcoin and Risk Assets Explained